On Financial Expenditure Policy In Optimizing Our Country's Industrial Structure

Industrial structure has been one of the hot issues in the field of economy. Industrial structure varies with times and it develops with economy, the development of which promotes the upgrading of industrial structure, which accelerates the new rise in economy. Such kind of dynamism of industrial structure makes it an essential part at any stage of the development of economy. The importance of industrial structure makes it a continuous hotpot in study. This paper aims to provide some beneficial suggestions to the optimization of industrial structure of P.R China during the economic transition through study of financial expenditure during the process of the upgrading and optimization of the current industrial structure of our country.Our government has been adjusting the industrial structures since 1949 to promote the speed development of economy. However, due to some ideological problems and deviation in regulatory means, our current industrial structure can not meet the needs of the development of our economy. The basic position of agriculture is still weak, people work on the field are too many; the inner industrial structure of agriculture is still unreasonable, the utility of science and technology in agriculture is far more than adequate; industry is big in scale while not strong in strength, the dependency on science and technology is low. And most of the industries are seriously polluted, repeated constructed, uneconomic in scale. Tertiary industry is also too weak, the proportion it takes in GDP is too small,and workers in this field are too few. The inner structure is also unreasonable since large scale of them belong to traditional service industry while the new burgeoning industries are too few, as well as low in science and technology.As one of the developing countries which need urgent industrial upgrading, coordination and high-tech transformation is the mainstream of industrial structure optimization. The efficiency of financial expenditure policy is an essence during the process of the optimization of industrial structure. Since government can take the financial expenditure policy into full play to interpose economic activities so as to promote the development of economy on the basis of the realization of. Experiences of other countries show that financial expenditure has played an extremely part in the optimization of industrial structure. While our country has not exert to the utmost in financial support, and the means we adopted have been inappropriate. In addition, the marketilizaton of our country is not high enough and some problems of the planning economy are still in existence. Thus, to promote the speed development with the financial expenditure policy so as to adjust our industrial structure with the development of economy is one of the most urgent problems confronting us.Financial expenditure is an important policy in the upgrading and optimization of industrial structure.Firstly, support the agriculture with finance. Since agriculture is the basis of the national economy, it is our important task to guarantee the mass farmers to lead a well-being life by improving the position of agriculture in the three industries and accelerating the upgrading of the inner industrial structure of agriculture. Obviously, the role of financial expenditure should not be neglected for the construction of agricultural and country infrastructure, the development of science and technology in agriculture, the production of crop and agricultural structure adjusting, ecological construction and education, hygiene, culture and the harmonious development of agriculture and society all need the support of finance. Moreover, government should give the development of agriculture preferential offer in tax.Secondly, secondary industry, which refers to the so-called industry or manufacturing. It is known to all that our industry is big in scale while not strong in strength. The current industry mainly involves old sunset industry while lacks in new burgeoning industries and it takes too much proportion thus takes up the developing space of agriculture and tertiary industry. The inner structure of industry is unbalanced. In view of these problems, the policy of new industrialization road, which refers to promote the upgrading of industrial structure with information, science and technology and guides the development of industry more resource-saving, environment-friendly, high in science and technology and reasonable in export structure, is proposed by the government. Developing newly high-tech thus becomes the essence of the adjusting of the industrial structure of our country. However, due to the high risk, long cycle of newly high-tech, the adjusting role of market to the industrial structure loses its flexibility, which restricts the development of newly high-tech industry. Thus the financial support of government becomes necessary, government financial loan support; purchasing support will all accelerate the adjusting of our industrial structure.Thirdly, tertiary industry, the proportion of which in our national economy is too small. Problems still exist in the inner structure of tertiary industry. For instance, the main part of our tertiary industry is transportation, while bank and other financial service industries remain too few and education is far more than advanced as well. As an industry, tertiary industry can promote the development of industry and agriculture. Thus great support should be given to tertiary industry by promoting the development of education, cultivating excellent talents, protecting famous brand products and reducing the tax.